This valuation method assumes that the stock valuation will revert to its historical (10-Year) mean in terms of PS Ratio. The reason we use PS Ratio instead of PE Ratio or PB Ratio is because PS Ratio is independent of profit margin, and can be applied to a broader range of situations.
Median PS Value is calculated as trailing twelve months (TTM) Revenue per Share times 10-Year median PS Ratio. Costco Wholesale's Revenue per Share for the trailing twelve months (TTM) ended in Feb. 2024 was $559.807. Costco Wholesale's 10-Year median PS Ratio is 0.7428. Therefore, the Median PS Value for today is $415.80.
As of today (2024-04-19), Costco Wholesale's share price is $709.51. Costco Wholesale's Median PS Value is $415.80. Therefore, Costco Wholesale's Price to Median PS Value for today is 1.71.
The historical rank and industry rank for Costco Wholesale's Median PS Value or its related term are showing as below:
COST'
s Price-to-Median-PS-Value Range Over the Past 10 Years
Min: 1.09 Med: 1.44 Max: 1.99
Current: 1.71
During the past 13 years, the highest Price to Median PS Value of Costco Wholesale was 1.99. The lowest was 1.09. And the median was 1.44.
COST's Price-to-Median-PS-Value is ranked worse than 88.95% of 190
companies
in the Retail - Defensive industry
Industry Median: 0.965
vs COST: 1.71
Costco Wholesale Median PS Value Historical Data
The historical data trend for Costco Wholesale's Median PS Value can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
* Premium members only.
Costco Wholesale Annual Data
Trend
Aug14
Aug15
Aug16
Aug17
Aug18
Aug19
Aug20
Aug21
Aug22
Aug23
Median PS Value
179.70
209.94
257.93
320.37
375.90
Costco Wholesale Quarterly Data
May19
Aug19
Nov19
Feb20
May20
Aug20
Nov20
Feb21
May21
Aug21
Nov21
Feb22
May22
Aug22
Nov22
Feb23
May23
Aug23
Nov23
Feb24
Median PS Value
339.12
348.36
375.90
397.59
415.80
Competitive Comparison
For the Discount Stores subindustry, Costco Wholesale's Price-to-Median-PS-Value, along with its competitors' market caps and Price-to-Median-PS-Value data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Costco Wholesale Price-to-Median-PS-Value Distribution
For the Retail - Defensive industry and Consumer Defensive sector, Costco Wholesale's Price-to-Median-PS-Value distribution charts can be found below:
* The bar in red indicates where Costco Wholesale's Price-to-Median-PS-Value falls into.
Costco Wholesale Median PS Value Calculation
Costco Wholesale's Median PS Value for today is calculated as
10-Year Median PS Ratio is 0.7428.
Costco Wholesale's Revenue per Share for the trailing twelve months (TTM) ended in Feb. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $559.807.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Costco Wholesale (NAS:COST) Median PS Value Explanation
This valuation method assumes that the stock valuation will revert to its historical (10-Year) mean in terms of PS Ratio. The reason we use PS Ratio instead of PE Ratio or PB Ratio
is because PS Ratio is independent of profit margin, and can be applied to a broader range of situations.
It also assumes that over time the profit margin is constant. If a company increases its profit margin to a sustainable level, this value might under-estimate its value. If it has permanent declined profit margins, this may over-estimate the company's value.
Costco Wholesale's Price to Median PS Value for today is calculated as
Price to Median PS Value
=
Share Price
/
Median PS Value
=
709.51
/
415.80
=
1.71
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Costco Wholesale Median PS Value Related Terms
Thank you for viewing the detailed overview of Costco Wholesale's Median PS Value provided by GuruFocus.com. Please click on the following links to see related term pages.
Costco operates a membership-based, no-frills retail model, predicated on offering a select product assortment in bulk quantities at bargain prices. The firm avoids maintaining costly product displays by keeping inventory on pallets and limits distribution expenses by storing its inventory at point of sale in the warehouse. Given Costco's frugal cost structure, the firm is able to price its merchandise below competing retailers, driving high sales volume per warehouse and allowing the retailer to generate strong profits on thin margins. Costco operates nearly 600 warehouses in the United States and boasts over 60% market share in the domestic warehouse club industry. Internationally, Costco operates another 270 warehouses, primarily in markets such as Canada, Mexico, Japan, and the U.K.
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